NCDEX hails CTT notifications; sees limited impact on it
NCDEX, the country's leading agri-commodity exchange, Thursday welcomed the notification on Commodity Transaction Tax (CTT) saying the levy would have a limited impact on the bourse as 23 farm items have been exempted from this tax.
New Delhi: NCDEX, the country's leading agri-commodity exchange, Thursday welcomed the notification on Commodity Transaction Tax (CTT) saying the levy would have a limited impact on the bourse as 23 farm items have been exempted from this tax.
NCDEX would have some impact of CTT as processed food items like soyaoil, sugar, jaggery (gur), Guar Gum and RBD palmolein, traded on its platform would attract 0.01 percent CTT from July 1.
"We note the contents of the notification, we welcome the clarification, certainty is better than uncertainty. We also welcome the support to Agri products, all support to farmers is welcome and is consistent with the NCDEX mission," NCDEX Managing Director (Incharge) Sami Shah said in a statement.
He said that some agri-products are missing on the exemption limits and the same would be taken up separately with the authorities in due course.
"We will now proceed to implement and see the impact upon implementation. Generally for our products, we see limited impact as our focus has been on value chain participants and hedgers and these participants are more long term players," Shah said.
The 23 items which would be exempted from the CTT include wheat, barley, chana, cotton, potato, coriander, cardamom and guar seeds.
CTT at 0.01 percent will be levied on various non- agricultural commodities, including gold, sugar and edible oils, with effect from July 1, said a notification today.
There are 22 commodity bourses in the country, of which six of them operate at national level. The combined turnover of these bourses stood at Rs 170,46,840 crore in 2012-13, down by six percent from the previous fiscal.
Of the total turnover, more than 80 percent comes from non-agricultural commodities.